Property taxes set to increase 2.5%

Citing an estimate by the Manufacturers Association of Israel, Army Radio on Sunday reported that arnona (local property tax) will rise by 2.5% in 2013. The tax hike comes in addition to state taxes, which will likely be raised after the elections when a new government passes a state budget.

The Ministry of Interior is due to announce the property tax hike soon, based on the formula of the rise in the Consumer Price Index (CPI) over the preceding 12 months and public sector salaries.

Manufacturers Association president Amir Hayek says that the arnona hike will amount to NIS 80 million next year.